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Is Anything Behind The Comeback Of The £5 Note?

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http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=507290&in_page_id=7&ct=5

Cash machines stocked with just £5 notes

28 June 2010

Cash machines that only dispense £5 notes regardless of how much money is withdrawn are to be installed across Britain.

The nationwide introduction of small fund-only ATMs comes after support by Bank of England bosses.

They want to increase the circulation of the notes so that less crumpled fivers are handed out as change in shops.

Shoppers also found it easier to budget their money when the machines were trialled at two locations in London.

Now Bank Machine, a firm based in Hatfield, Hertfordshire, has installed 21 machines across the country.

The group said their two existing machines were currently putting around 100,000 £5 notes into circulation each month.

Managing director Ron Delnevo said: 'Whether you withdraw £50 or £5 at our machines it will all be in £5 notes.

'There is cast iron proof that cash - and small denominations in particular - help people to budget, especially now during these financially stretching times.'

Andrew Bailey, chief cashier at the Bank of England, said: 'The Bank has several projects under way to meet public demand for more £5 notes. One of these aims at encouraging the industry to include £5 notes in their ATMs - the front line of cash provision to the public.

'Bank Machine's launch of a network of £5-only ATMs across the UK is thus a very welcome move.'

The new ATMs will be at locations across Britain, including Manchester, Stroud, Oxford, Cardiff, Portsmouth and Banchory in Aberdeenshire. Bank Machine operates nearly 3,000 ATMs, including more than 700 that are free to use.

Last summer, HSBC and Barclays promised to begin a programme of stocking £5 notes in cash machines in low-income areas and university campuses in an attempt to help customers with budgeting in the recession.

Tha banks decided to offer the note in places where people withdraw £10 to £20 each time, as opposed to the national average of £60.

Ten years ago cash machines routinely gave out £5 notes, but recently customers have only had a choice of £10 or £20 notes.

As I see it... the destuction of "wealth" caused by credit contraction in the form of asset price declines decimates balance sheets. If there literally is "no money left" then the fix (QE) has the effect of increasing the monetary base and the flip into hyperinflation becomes even more of a hair trigger.

It's only after any new QE money is neatly consumed by bank and government balance sheets that the hair trigger becomes a little more stable. While the monetary base is up, the BoE must be watching inflation and inflationary expectations like a hawk.

What better way to fake strength in one's own currency that to reduce the denomination of the most popular unit of exchange in real terms?

Comments? I'm leaning more towards deflation at the moment BTW, but only if tricks like this work...

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Comments? I'm leaning more towards deflation at the moment BTW, but only if tricks like this work...

So they are filling machines that dispense £5 notes in places that people take out less than the national average. Seems like common sense rather than anything else.

The up side is that 2300 of the 3000 seem to charge you for taking out cash, so the handling charge as a percentage of the total is pretty high. More taxing of the poor...

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The up side is that 2300 of the 3000 seem to charge you for taking out cash, so the handling charge as a percentage of the total is pretty high. More taxing of the poor...

You see, NOW you are catching on.

When the government said the banks had to earn their way back to profit and pay back the government loans, exactly how did you think they were going to do it... by charging rich people more?

Edited by TaxAbuserOfTheWeek

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Oh stop being so cynical you lot. Believe in this line:

'There is cast iron proof that cash - and small denominations in particular - help people to budget, especially now during these financially stretching times.'

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Oh stop being so cynical you lot. Believe in this line:

The usual psychological cack that the banksters love rather than changing anything actual.

I wonder if it's tied to their "two tiered money" nonsense?

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Funny story in China about people getting peeved and paying large amounts of money with 1RMB coins or notes. China obstinately won't print a bigger demonination that the red mao note though.

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Oh stop being so cynical you lot. Believe in this line:

Thats wrong though, in that if you have lots of small denomination notes then you will spend the money easier than if you have just one.

Its like a casino you have a £10000 chip or you can have 10000 £1 chips you are going to be a hell of a lot more careful with the £10000 chip than the 10000 individual chips aren't you?

This we should be issuing £1000 notes, and thus people will be very careful with their money.

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Continues the banks policy of trying to force more people out of cash and into digital. It's easier to control, more difficult to hoard, easy to trace payments, facilitates transaction taxes - remember Cameron proposed this?

* Bills of Exchange (cheques) to be withrawn 2017

* Large denomination euros withdrawn (due to 'crime' i.e. bypassing banksters)

* Anti-money laundering legislation i.e. Only criminals use cash

* Reduced limits on counter cash withdrawals

* Reduced limits on ATM withdrawals

* Lower denomination notes - fivers

It's blindingly obvious. Most people look at you with a vacant expression if you mention Bills of Exchange. It's like living in a parallel universe tbh.

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...'They want to increase the circulation of the notes'...

heh.

They've been complaining about/struggling with the £5 note issue for years. I don't think it is anything other than what it says on the tin.

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Everyone has been asking for more £5 notes for years - and now they are being provided, some posters on this website have managed to weave this common-sense action into part of a grand conspiracy!

Sometimes if it looks like a duck, it is simply a duck, not some kind of NWO decoy.

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Everyone has been asking for more £5 notes for years - and now they are being provided, some posters on this website have managed to weave this common-sense action into part of a grand conspiracy!

Sometimes if it looks like a duck, it is simply a duck, not some kind of NWO decoy.

Now even ducks are part of the NWO? Is nothing sacred?

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I suspect it because people are watching their cash and are buying items as and when needed in stores - i.e food - and using their cards. The processing for this is probably cost a great deal of money for the shops and banks so they want us to take the fivers out instead.

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I suspect it because people are watching their cash and are buying items as and when needed in stores - i.e food - and using their cards. The processing for this is probably cost a great deal of money for the shops and banks so they want us to take the fivers out instead.

The banks make a profit on debit and (especially) credit card transactions. They charge the retailer, who in turn adds that overhead to the cost of your goods.

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The banks make a profit on debit and (especially) credit card transactions. They charge the retailer, who in turn adds that overhead to the cost of your goods.

But it also costs businesses a fortune to deposit cash too. The banks have everyone over a barrel no matter what people do.

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But it also costs businesses a fortune to deposit cash too. The banks have everyone over a barrel no matter what people do.

Supermarket food has a profit margin in it, but restaurant food has an even bigger margin! Those food suppliers have everyone over a barrel no matter what people do. ;)

(Well unless businesses keep all their cash in a safe, or people grow their own food...)

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<br />The banks make a profit on debit and (especially) credit card transactions. They charge the retailer, who in turn adds that overhead to the cost of your goods.<br />
<br /><br /><br />

I'm sure our shop retail managers etc will back this up too -

Banks have (inexplicably) whacked the charges up loads for handling cash and coin handling - which in return gets stuck on our retail bills too!

Like the Govt - they just lurrrrve their 'hidden' Xtra transaction taxations on the public - interest on lending money just ain't enough for the likes of 'them'!

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http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=507290&in_page_id=7&ct=5

Cash machines stocked with just £5 notes

28 June 2010

As I see it... the destuction of "wealth" caused by credit contraction in the form of asset price declines decimates balance sheets. If there literally is "no money left" then the fix (QE) has the effect of increasing the monetary base and the flip into hyperinflation becomes even more of a hair trigger.

It's only after any new QE money is neatly consumed by bank and government balance sheets that the hair trigger becomes a little more stable. While the monetary base is up, the BoE must be watching inflation and inflationary expectations like a hawk.

What better way to fake strength in one's own currency that to reduce the denomination of the most popular unit of exchange in real terms?

Comments? I'm leaning more towards deflation at the moment BTW, but only if tricks like this work...

You can take your tin foil hat off, this is to do with the fact that £5 notes tend to be falling to bits as people rarely pay them into a bank account where they can be destroyed and replaced with new ones. A much better solution would be to replace them with £5 coins and get rid of the worthless 1p and 2p coins that weigh down our pockets, but that would lead to accusations of inflation.

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You can take your tin foil hat off, this is to do with the fact that £5 notes tend to be falling to bits as people rarely pay them into a bank account where they can be destroyed and replaced with new ones. A much better solution would be to replace them with £5 coins and get rid of the worthless 1p and 2p coins that weigh down our pockets, but that would lead to accusations of inflation.

Metal is worth more than paper, no?

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You can take your tin foil hat off, this is to do with the fact that £5 notes tend to be falling to bits as people rarely pay them into a bank account where they can be destroyed and replaced with new ones. A much better solution would be to replace them with £5 coins and get rid of the worthless 1p and 2p coins that weigh down our pockets, but that would lead to accusations of inflation.

No coin is better than notes, at least when the currency goes hyper the metal content (remember when not if) can be sold as scrap value. IIR Indians smuggle loads of small coins to Pakistan where the metal content value is more valuable than the face value of them.

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      • down 5% +
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